According to data released on Thursday by the National Payments Corporation of India (NPCI), the volume of Unified Payments Interface (UPI) transactions rose by 23 percent year-on-year to 24.07 billion in September. Meanwhile, the total value of transactions increased by 18 percent to ₹29.37 lakh crore.
On average, approximately 802 million (80.2 crore) UPI transactions took place daily in September. The average daily value of these transactions stood at around ₹97,913 crore. In August, the volume of UPI transactions had risen by 22 percent year-on-year to 24.51 billion, while the transaction value increased by 20 percent to ₹29.82 lakh crore.
According to NPCI data, the value of instant fund transfers via IMPS rose by 18 percent year-on-year to ₹7.06 lakh crore in September. Additionally, the system recorded an average of 11.8 million (1.18 crore) daily transactions, with an average daily transaction value of ₹23,530 crore.
Separately, major merchant associations have withdrawn their call to observe a ‘No UPI Day’ on October 2 following a meeting with Union Finance Minister Nirmala Sitharaman in the national capital. A delegation comprising trade representatives from various states met the Finance Minister to express their concerns regarding the proposed 0.4 percent charge on merchant UPI transactions exceeding ₹2,000.
Traders stated that this move could increase the burden on small and medium-sized businesses and impact the adoption of digital payments among merchants. The delegation was led by Praveen Khandelwal, Member of Parliament (MP) from Chandni Chowk and Secretary General of the Confederation of All India Traders (CAIT).
The MDR applies only to P2M (Person-to-Merchant) transactions exceeding ₹2,000. The MDR will remain zero for transactions up to ₹2,000. According to government data, transactions of up to ₹2,000 account for more than 96 percent of the total volume of UPI merchant transactions.
This means that a vast number of UPI payments will fall outside the scope of MDR, and consequently, no GST will be levied on MDR. Merchants with monthly UPI receipts of up to ₹1 lakh will not be required to pay MDR. The new UPI framework will have no impact on person-to-person (P2P) transactions; UPI will remain completely free for all P2P transactions, regardless of the amount.
